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News Release: Gross Domestic Product and Corporate Profits

The tables in this release are available in an XLS spreadsheet and the entire release is available in PDF format.
Also available: a brief summary of highlights.

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, THURSDAY, MARCH 25, 2004


Virginia H. Mannering:  (202) 606-5304   (GDP)                          BEA 04-13
Kenneth A. Petrick:     (202) 606-9738   (Profits)
Recorded message:       (202) 606-5306



        GROSS DOMESTIC PRODUCT:  FOURTH QUARTER 2003 (FINAL)
               CORPORATE PROFITS:  FOURTH QUARTER 2003



    Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 4.1 percent in the fourth quarter of 2003,
according to revised estimates released by the Bureau of Economic Analysis.  In the third quarter, real
GDP increased 8.2 percent.
 
    The GDP estimates released today are based on more complete source data than were available for
the preliminary estimates issued last month.  In the preliminary estimates, the increase in real GDP was 
also 4.1 percent (see "Revisions" on page 3).

    The major contributors to the increase in real GDP in the fourth quarter were personal
consumption expenditures (PCE), exports, equipment and software, private inventory investment, and
residential fixed investment.  Imports, which are a subtraction in the calculation of GDP, increased.
    
    The deceleration in real GDP growth in the fourth quarter primarily reflected a deceleration in
PCE, an acceleration in imports, a deceleration in residential fixed investment, and a downturn in
government spending that were partly offset by an acceleration in exports and an upturn in private
inventory investment.

    Final sales of computers contributed 0.29 percentage point to the fourth-quarter change in real
GDP after contributing 0.65 percentage point to the third-quarter change.  Motor vehicle output
contributed 0.13 percentage point to the fourth-quarter change in real GDP after contributing 0.82
percentage point to the third-quarter change.  



FOOTNOTE.--Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified.  Quarter-to-quarter dollar changes are differences between these published estimates.  Percent
changes are calculated from unrounded data and annualized.  "Real" estimates are in chained (2000)
dollars.  Price indexes are chain-type measures.

         This news release is available on BEA's Web site at <www.bea.gov/newsreleases/rels.htm>.


    The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.3 percent in the fourth quarter, 0.2 percentage point more than in the preliminary estimate;
this index increased 1.8 percent in the third quarter.  Excluding food and energy prices, the price index
for gross domestic purchases increased 1.5 percent in the fourth quarter, compared with an increase of
1.3 percent in the third.  

    Real personal consumption expenditures increased 3.2 percent in the fourth quarter, compared
with an increase of 6.9 percent in the third.  Real nonresidential fixed investment increased 10.9 percent,
compared with an increase of 12.8 percent.  Nonresidential structures decreased 1.4 percent, compared
with a decrease of 1.8 percent.  Equipment and software increased 14.9 percent, compared with an
increase of 17.6 percent.  Real residential fixed investment increased 7.9 percent, compared with an
increase of 21.9 percent.

    Real exports of goods and services increased 20.5 percent in the fourth quarter, compared with an
increase of 9.9 percent in the third.  Real imports of goods and services increased 16.4 percent,
compared with an increase of 0.8 percent.

    Real federal government consumption expenditures and gross investment increased 0.7 percent in
the fourth quarter, compared with an increase of 1.2 percent in the third.  National defense increased 3.0
percent, in contrast to a decrease of 1.3 percent.  Nondefense decreased 3.7 percent, in contrast to an
increase of 6.5 percent.  Real state and local government consumption expenditures and gross
investment decreased 0.5 percent, in contrast to an increase of 2.1 percent.

    The real change in private inventories added 0.71 percentage point to the fourth-quarter change in
real GDP, after subtracting 0.13 percentage point from the third-quarter change.  Private businesses
increased inventories $9.0 billion in the fourth quarter, following decreases of $9.1 billion in the third
quarter and $4.5 billion in the second.

    Real final sales of domestic product -- GDP less change in private inventories -- increased 3.4
percent in the fourth quarter, compared with an increase of 8.3 percent in the third.


Gross domestic purchases

    Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 4.3 percent in the fourth quarter, compared with an increase of 7.0 percent in the
third. 


Gross national product

    Real gross national product -- the goods and services produced by the labor and property supplied
by U.S. residents -- increased 5.5 percent in the fourth quarter, compared with an increase of 8.3 percent
in the third.  GNP includes, and GDP excludes, net receipts of income from the rest of the world, which
increased $36.4 billion in the fourth quarter after increasing $3.6 billion in the third; in the fourth
quarter, receipts increased $45.3 billion, and payments increased $8.9 billion.


Current-dollar GDP

    Current-dollar GDP   the market value of the nation's output of goods and services -- increased
5.7 percent, or $155.0 billion, in the fourth quarter to a level of $11,262.0 billion.  In the third quarter,
current-dollar GDP increased 10.0 percent, or $260.3 billion.


Revisions

    The final estimate of the fourth-quarter increase in real GDP is the same as the preliminary
estimate.  Upward revisions to personal consumption expenditures for services and to nonresidential
structures were offset by downward revisions to private inventory investment and to state and local
government spending.



                                           Advance     Preliminary     Final
                                        (Percent change from preceding quarter)
Real GDP...............................      4.0           4.1          4.1
Current-dollar GDP.....................      5.1           5.3          5.7
Gross domestic purchases price index...      1.0           1.1          1.3



                           Corporate Profits

    Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) increased $81.4 billion in the fourth quarter, compared with an increase of 
$101.4 billion in the third.  Current-production cash flow (net cash flow with inventory valuation and
capital consumption adjustments) -- the internal funds available to corporations for investment --
increased $70.6 billion in the fourth quarter, compared with an increase of $77.2 billion in the third.

     Taxes on corporate income increased $13.1 billion in the fourth quarter, compared with an
increase of $19.2 billion in the third.  Profits after tax with inventory valuation and capital consumption
adjustments increased $68.2 billion in the fourth quarter, after increasing $82.4 billion in the third. 
Dividends increased $7.5 billion, compared with an increase of $6.8 billion; current-production
undistributed profits increased $60.9 billion, compared with an increase of $75.5 billion.

    Domestic profits of financial corporations increased $5.2 billion in the fourth quarter, compared
with an increase of $19.6 billion in the third.  Domestic profits of nonfinancial corporations increased
$28.7 billion in the fourth quarter, compared with an increase of $72.6 billion in the third.  In the fourth
quarter, both real gross value added and profits per unit of real gross value added increased.  The
increase in unit profits reflected an increase in the prices corporations received and a decrease in the unit
labor costs incurred by corporations; unit nonlabor costs were unchanged.
    
    The foreign component of profits (rest-of-the-world profits) increased $47.5 billion in the fourth
quarter, compared with an increase of $9.2 billion in the third.  This measure is calculated as (1) receipts
by U.S. residents of earnings from their foreign affiliates plus dividends received by U.S. residents from
unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign
parents plus dividends paid by U.S. corporations to unaffiliated foreign residents.  The fourth-quarter
increase was accounted for by a larger increase in receipts than in payments.

    Profits before tax with inventory valuation adjustment is the best available measure of industry
profits because estimates of the capital consumption adjustment by industry do not exist.  This measure
reflects the depreciation-accounting practices used for federal income tax returns.  According to this
measure, both domestic profits of financial corporations and domestic profits of nonfinancial
corporations increased.  Profit increases of nonfinancial corporations primarily reflected increases in
manufacturing, in "other" nonfinancial industries, and in utilities that were partially offset by decreases
in information, in retail trade, and in wholesale trade.

    Profits before tax increased $92.2 billion in the fourth quarter, compared with an increase of $73.4
billion in the third.  The before-tax measure of profits does not reflect, as does profits from current
production, the capital consumption and inventory valuation adjustments.  These adjustments convert
depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to
the current-cost measures used in the national income and product accounts.  The capital consumption
adjustment increased $9.1 billion in the fourth quarter (from $260.1 billion to $269.2 billion), compared
with an increase of $30.9 billion in the third.  The inventory valuation adjustment decreased $19.9
billion (from -$1.8 billion to -$21.7 billion), compared with a decrease of $3.0 billion.


Corporate profits in 2003

    Profits from current production increased 18.3 percent in 2003, compared with an increase of 17.4
percent in 2002.  Domestic profits increased 20.6 percent, compared with an increase of 23.4 percent. 
The rest-of-the-world component of profits increased 7.6 percent, in contrast to a decrease of 5.0
percent.

    Profits tax liability increased 15.3 percent in 2003, in contrast to a decrease of 3.0 percent in 2002. 
Profits after tax with inventory valuation and capital consumption adjustments increased 19.2 percent,
compared with an increase of 24.6 percent.  Dividends increased 8.2 percent, compared with an increase
of 6.7 percent; current-production undistributed profits increased 33.2 percent, compared with an
increase of 58.6 percent.

    Profits before tax increased 15.0 percent in 2003, compared with an increase of 6.9 percent in
2002.  In 2003, the difference between the increase in profits from current production and the increase in
profits before tax was mainly due to the effects of the Job Creation and Worker Assistance Act of 2002
and the Jobs and Growth Tax Relief Reconciliation Act of 2003, which allowed accelerated depreciation
and lowered before-tax profits.  Profits from current production were not affected by the acts, because
this measure does not depend on the depreciation-accounting practices used for federal income tax
purposes.

                                   
    BEA's major national, international, regional, and industry estimates; the Survey of Current
Business; and BEA news releases are available without charge on BEA's Web site:

                             <www.bea.gov>

    Summary BEA estimates are available on recorded messages at the time of public release at the
following telephone numbers:
    
               (202) 606-5306    Gross domestic product
               (202) 606-5303    Personal income and outlays
               (202) 606-5362    U.S. international transactions
    

    Most of BEA's estimates and analyses are published in the Survey of Current Business, BEA's
monthly journal.  Subscriptions and single copies of the printed Survey are for sale by the
Superintendent of Documents, U.S. Government Printing Office.  Internet:  <bookstore.gpo.gov>;
phone: 202-512-1800; fax: 202-512-2250; mail: Stop SSOP, Washington, DC 20402-0001.
                                   


                        *          *          *



           Next release -- April 29, 2004, at 8:30 A.M. EDT for:
           Gross Domestic Product:  First Quarter 2004 (Advance)
                                                                           
    

                                    Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003r  I 00  II 00 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03r IV 03r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).     .5    2.2    3.1    1.0    6.4    -.5    2.1    -.2    -.6   -1.3    2.0    4.7    1.9    3.4    1.3    2.0    3.1    8.2    4.1

Personal consumption expenditures...    2.5    3.4    3.1    6.5    2.5    3.9    3.4     .5    2.3    1.9    6.2    4.1    2.6    2.0    2.2    2.5    3.3    6.9    3.2
  Durable goods.....................    4.1    6.5    7.4   24.4   -9.5    6.0     .7    1.7    9.8     .7   27.3    1.6     .5    5.0     .3     .5   17.7   28.0     .7
  Nondurable goods..................    1.9    3.0    3.8     .3    5.7    2.3    3.7     .4   -1.1    2.9    4.7    6.1     .4     .2    4.6    5.7    1.2    7.3    5.4
  Services..........................    2.4    3.0    2.0    6.0    3.9    4.3    3.9     .3    2.4    1.6    2.8    3.8    4.1    2.2    1.5    1.5    1.7    2.8    2.8

Gross private domestic investment...   -8.4   -1.2    4.2   -6.9   29.1   -9.9   -2.3  -11.1  -16.4   -8.5  -17.7   11.1    4.6   11.4    -.6   -3.5    4.7   14.8   14.9
  Fixed investment..................   -3.2   -3.7    4.4   11.5    9.5    -.6     .7   -2.7   -9.2   -5.2  -10.8   -2.5     .6     .6    2.1    1.1    6.1   15.8    9.9
    Nonresidential..................   -4.5   -7.2    3.0   14.3   14.8    2.2     .9   -4.5  -13.6   -8.4  -14.0   -7.0   -3.0   -1.1    -.1    -.6    7.0   12.8   10.9
      Structures....................   -2.5  -18.4   -4.6    7.0   18.0    9.6    1.2   -5.9   -5.6    2.2  -35.3  -23.9  -14.5  -14.6   -5.6   -4.0    3.9   -1.8   -1.4
      Equipment and software........   -5.2   -2.8    5.5   16.9   13.7    -.2     .8   -4.0  -16.4  -12.2   -4.1    -.2    1.2    3.7    1.7     .5    8.0   17.6   14.9
    Residential.....................     .4    4.9    7.5    4.1   -3.5   -8.0     .4    2.6    3.7    3.1   -2.5    8.7    8.9    4.2    6.8    4.5    4.5   21.9    7.9
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................   -5.2   -2.4    2.0    6.6   12.3   10.7   -2.7   -4.5  -13.4  -17.7   -9.8    4.4    8.7    4.3   -3.7   -2.0   -1.1    9.9   20.5
    Goods...........................   -6.1   -4.0    1.9    8.7   13.8   18.3   -5.4   -5.4  -18.1  -18.9   -7.6   -2.6   12.0    4.3   -9.1    1.9   -1.7    8.6   21.3
    Services........................   -3.1    1.4    2.3    1.4    8.5   -6.6    4.4   -2.0    -.6  -14.7  -15.0   22.8    1.6    4.5    9.4  -10.1     .2   12.7   18.9
  Imports...........................   -2.6    3.3    4.0   16.7   16.5   14.1   -1.6   -6.2   -8.6  -10.8   -3.8    8.4   17.1    4.1    8.2   -6.8    9.1     .8   16.4
    Goods...........................   -3.2    3.7    4.8   16.0   17.7   14.1   -1.6   -6.8  -12.2   -9.2   -3.2    6.3   21.9    4.8    7.4   -6.6   13.7   -1.5   18.3
    Services........................     .4    1.4    -.1   20.8   10.7   14.1   -1.9   -3.1   12.5  -18.2   -6.9   19.2   -3.6     .7   12.2   -7.5  -10.9   13.4    7.5

Government consumption expenditures
 and gross investment...............    2.8    3.8    3.3   -3.0    5.5   -2.1    1.3    5.8    5.8   -4.1    7.4    4.6    4.0    2.5    7.1    -.4    7.4    1.8    -.1
  Federal...........................    3.7    7.9    8.7  -13.9   17.2   -8.2   -1.0    8.9    6.7     .0    9.9    8.4   10.5    3.9   18.2    -.2   23.5    1.2     .7
    National defense................    3.9    8.9   10.6  -21.3   17.0   -7.4    1.7    7.7    2.6    2.4   14.2    8.2    9.5    4.5   22.1   -5.6   41.9   -1.3    3.0
    Nondefense......................    3.5    6.2    5.3    1.2   17.6   -9.7   -5.7   11.2   14.4   -4.3    2.6    8.7   12.2    2.9   11.4   10.5   -5.0    6.5   -3.7
  State and local...................    2.2    1.8     .5    3.2     .1    1.3    2.5    4.3    5.3   -6.1    6.1    2.7     .7    1.7    1.5    -.5    -.8    2.1    -.5

Addenda:
  Final sales of domestic product...    1.4    1.8    3.2    4.2    3.3    1.3    2.6    1.4     .7    -.7    3.2    2.6    1.3    1.8    1.7    2.7    3.3    8.3    3.4
  Gross domestic purchases..........     .7    2.8    3.3    2.5    7.2     .4    2.1    -.7    -.4    -.8    2.4    5.2    3.1    3.4    2.7    1.1    4.3    7.0    4.3
  Final sales to domestic
   purchasers.......................    1.6    2.4    3.4    5.6    4.2    2.1    2.6     .9     .9    -.3    3.6    3.2    2.5    1.8    3.1    1.8    4.5    7.2    3.6
  Gross national product (GNP)......     .5    2.1    3.3     .8    6.6    -.7    3.0   -1.3    -.6   -1.9    4.6    2.6    1.3    3.8    2.0    1.5    3.3    8.3    5.5
  Disposable personal income........    1.8    3.8    2.6    9.2    2.7    5.2     .6    -.3   -1.4   12.2   -4.4   10.6    4.1    -.9     .6    2.4    4.9    6.8     .5

  Current-dollar measures:
    GDP.............................    2.9    3.8    4.8    4.7    8.3    1.6    3.8    2.9    2.6     .3    3.9    5.4    3.9    4.4    3.1    4.3    4.2   10.0    5.7
    Final sales of domestic product.    3.9    3.3    4.9    7.8    5.4    3.2    4.5    4.5    4.0     .9    4.8    3.8    2.8    3.3    3.5    5.1    4.4   10.1    5.0
    Gross domestic purchases........    2.7    4.2    5.3    6.6    8.9    2.9    3.7    1.9    1.9     .2    3.3    5.8    6.1    4.6    4.5    4.5    4.7    8.9    5.7
    Final sales to domestic
     purchasers.....................    3.6    3.8    5.4    9.7    6.1    4.5    4.4    3.5    3.3     .7    4.1    4.2    5.0    3.5    4.8    5.3    4.8    9.1    5.0
    GNP.............................    2.8    3.6    5.0    4.4    8.4    1.4    4.7    1.8    2.5    -.3    6.5    3.3    3.3    4.9    3.9    3.9    4.4   10.1    7.1
    Disposable personal income......    3.8    5.2    4.5   13.0    4.7    7.2    2.4    2.9    1.1   12.8   -4.1   11.4    7.2    1.1    2.3    5.3    5.4    8.7    1.5
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the third
quarter of 2003.
  See "Explanatory Note" at the end of the tables.

                                                Table 2.--Contributions to Percent Change in Real Gross Domestic Product
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003r  I 00  II 00 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........     .5    2.2    3.1    1.0    6.4    -.5    2.1    -.2    -.6   -1.3    2.0    4.7    1.9    3.4    1.3    2.0    3.1    8.2    4.1

Percentage points at annual rates:

  Personal consumption expenditures.   1.68   2.38   2.22   4.38   1.78   2.62   2.29    .28   1.52   1.27   4.20   2.92   1.81   1.39   1.57   1.80   2.34   4.89   2.29

    Durable goods...................    .36    .55    .61   1.96   -.89    .50    .06    .15    .80    .06   2.14    .14    .04    .43    .02    .04   1.38   2.23    .06
      Motor vehicles and parts......    .19    .18    .17   1.31  -1.12    .28    .01    .04    .67   -.13   1.58   -.44   -.25    .29   -.33   -.16    .54   1.36   -.35
      Furniture and household
       equipment....................    .18    .30    .29    .45    .19    .19    .07    .18    .16    .23    .40    .45    .23    .12    .24    .04    .54    .65    .30
      Other.........................   -.01    .08    .16    .19    .04    .03   -.02   -.07   -.02   -.04    .16    .13    .05    .02    .11    .17    .30    .21    .11

    Nondurable goods................    .37    .60    .76    .06   1.11    .44    .72    .06   -.22    .57    .91   1.19    .07    .04    .90   1.13    .25   1.48   1.07
      Food..........................    .12    .22    .37    .16    .39    .09    .14    .22   -.03    .02    .14    .56    .19    .03    .22    .63    .23    .71    .32
      Clothing and shoes............    .06    .15    .14    .27    .21    .19    .04   -.08    .01    .15    .19    .33    .01   -.01    .21    .09    .21    .27    .04
      Gasoline, fuel oil, and other
       energy goods.................    .03    .04    .00   -.13   -.06   -.05    .25    .12   -.37    .09    .32    .10   -.20   -.09    .21    .08   -.40    .07    .39
      Other.........................    .15    .20    .26   -.23    .56    .21    .29   -.19    .17    .31    .27    .22    .07    .11    .25    .33    .20    .43    .33

    Services........................    .96   1.23    .85   2.36   1.55   1.67   1.51    .07    .94    .64   1.15   1.58   1.70    .92    .65    .63    .71   1.19   1.16
      Housing.......................    .28    .29    .24    .32    .31    .27    .28    .33    .26    .21    .25    .35    .33    .28    .25    .26    .20    .25    .17
      Household operation...........    .00    .04    .02    .12    .51    .16    .41   -.27   -.31   -.05   -.17    .18    .36   -.14    .04    .04   -.13    .14    .05
        Electricity and gas.........   -.02    .04    .00   -.05    .33    .07    .40   -.15   -.49   -.04   -.13    .20    .27   -.05    .09    .01   -.21    .06    .02
        Other household operation...    .02    .00    .02    .18    .18    .08    .01   -.12    .17   -.01   -.04   -.02    .09   -.09   -.05    .03    .08    .08    .03
      Transportation................   -.02   -.05   -.07    .12    .08   -.01    .01    .03   -.01   -.15   -.14    .10   -.05   -.12   -.09    .01   -.11   -.06   -.08
      Medical care..................    .45    .63    .59    .37    .47    .41    .42    .35    .47    .62    .61    .75    .61    .51    .69    .59    .53    .60    .58
      Recreation....................    .06    .11    .06    .06    .14    .10    .04    .09   -.02    .06    .15    .19    .07    .05    .09    .00    .10    .08    .12
      Other.........................    .18    .20    .00   1.37    .05    .75    .34   -.45    .56   -.06    .45    .00    .38    .34   -.33   -.28    .13    .19    .33

  Gross private domestic investment.  -1.47   -.18    .64  -1.30   4.65  -1.84   -.36  -1.96  -2.92  -1.39  -2.98   1.60    .69   1.66   -.09   -.57    .73   2.17   2.19

    Fixed investment................   -.54   -.60    .67   1.83   1.60   -.10    .13   -.45  -1.60   -.88  -1.83   -.41    .08    .08    .31    .16    .90   2.30   1.48
      Nonresidential................   -.56   -.82    .30   1.64   1.76    .28    .11   -.56  -1.76  -1.02  -1.71   -.81   -.33   -.12   -.01   -.06    .68   1.25   1.08
        Structures..................   -.08   -.59   -.12    .21    .53    .29    .04   -.20   -.19    .07  -1.36   -.77   -.41   -.40   -.14   -.10    .09   -.04   -.03
        Equipment and software......   -.47   -.23    .42   1.44   1.23   -.02    .07   -.37  -1.57  -1.09   -.35   -.03    .09    .28    .13    .04    .59   1.30   1.11
          Information processing
           equipment and software...   -.10    .02    .54   1.13    .96    .33    .58   -.20   -.84   -.58   -.15    .09    .37    .53   -.06    .64    .64   1.05    .70
            Computers and peripheral
             equipment..............    .02    .11    .24    .22    .45    .12    .06    .16   -.22   -.26    .19    .22    .06    .28    .09    .21    .33    .39    .26
            Software................   -.04   -.04    .14    .17    .18    .02    .20   -.07   -.24   -.16   -.21   -.05    .09    .21   -.06    .18    .15    .24    .23
            Other...................   -.08   -.05    .16    .74    .33    .19    .32   -.28   -.39   -.16   -.14   -.08    .21    .05   -.10    .26    .15    .41    .20
          Industrial equipment......   -.14   -.09   -.05    .29    .14    .09   -.12    .04   -.53   -.30   -.22    .26   -.21    .00   -.04   -.10   -.02    .02   -.03
          Transportation equipment..   -.18   -.14   -.11   -.12    .04   -.31   -.36   -.27    .00   -.25    .24   -.34   -.24   -.26    .20   -.37   -.09   -.05    .25
          Other equipment...........   -.05   -.02    .04    .13    .09   -.13   -.03    .06   -.21    .04   -.21   -.04    .17    .00    .04   -.13    .05    .28    .20
      Residential...................    .02    .23    .36    .19   -.16   -.38    .02    .12    .16    .14   -.12    .40    .41    .20    .32    .22    .22   1.05    .40

    Change in private inventories...   -.93    .41   -.03  -3.13   3.05  -1.74   -.49  -1.51  -1.32   -.51  -1.15   2.01    .61   1.58   -.40   -.74   -.17   -.13    .71
      Farm..........................    .02   -.03    .02   -.51    .88   -.36    .34    .03   -.34    .14   -.26    .39   -.64    .34   -.02    .15   -.09   -.03    .10
      Nonfarm.......................   -.94    .44   -.05  -2.62   2.18  -1.38   -.83  -1.54   -.99   -.65   -.89   1.62   1.25   1.25   -.38   -.88   -.08   -.10    .61

  Net exports of goods and services.   -.19   -.70   -.35  -1.53   -.98   -.87   -.07    .46   -.25   -.42   -.50   -.65  -1.32   -.15  -1.47    .81  -1.34    .80   -.32

    Exports.........................   -.58   -.24    .20    .70   1.30   1.14   -.31   -.50  -1.54  -1.99  -1.02    .40    .80    .41   -.37   -.19   -.11    .92   1.81
      Goods.........................   -.48   -.29    .13    .65   1.03   1.36   -.45   -.44  -1.52  -1.50   -.54   -.19    .75    .28   -.64    .13   -.11    .56   1.29
      Services......................   -.10    .04    .07    .05    .26   -.22    .14   -.06   -.02   -.48   -.47    .59    .05    .13    .27   -.31    .01    .36    .52

    Imports.........................    .39   -.45   -.55  -2.23  -2.27  -2.01    .24    .96   1.29   1.57    .52  -1.05  -2.12   -.56  -1.10   1.00  -1.24   -.12  -2.14
      Goods.........................    .39   -.42   -.55  -1.79  -2.03  -1.70    .19    .88   1.57   1.10    .35   -.66  -2.20   -.55   -.83    .81  -1.51    .18  -1.96
      Services......................   -.01   -.03    .00   -.44   -.24   -.32    .04    .08   -.28    .47    .16   -.39    .09   -.02   -.27    .19    .27   -.30   -.17

  Government consumption expenditures
   and gross investment.............    .48    .69    .62   -.56    .96   -.37    .22    .99   1.00   -.74   1.28    .85    .72    .46   1.29   -.07   1.36    .34   -.01

    Federal.........................    .22    .48    .56   -.93    .96   -.51   -.07    .50    .38    .00    .57    .52    .64    .26   1.11   -.01   1.46    .09    .05
      National defense..............    .15    .35    .44   -.92    .61   -.29    .06    .27    .10    .09    .53    .33    .38    .19    .85   -.25   1.58   -.06    .13
        Consumption expenditures....    .13    .29    .40   -.88    .60   -.30    .11    .29    .00    .03    .50    .32    .22    .09    .93   -.19   1.39   -.20    .19
        Gross investment............    .02    .06    .04   -.04    .01    .01   -.05   -.01    .10    .06    .02    .01    .15    .10   -.07   -.06    .19    .13   -.05
      Nondefense....................    .07    .14    .12   -.01    .35   -.22   -.13    .23    .28   -.09    .04    .20    .27    .07    .26    .24   -.12    .15   -.09
       Consumption expenditures.....    .07    .12    .11    .21    .28   -.13   -.06    .19    .19   -.02    .06    .14    .15    .13    .26    .25   -.26    .23   -.13
       Gross investment.............    .00    .02    .01   -.22    .07   -.09   -.07    .04    .09   -.07   -.02    .06    .11   -.06    .00   -.01    .14   -.08    .04

    State and local.................    .26    .21    .06    .36    .01    .15    .29    .49    .62   -.74    .71    .33    .08    .20    .18   -.06   -.10    .25   -.06
        Consumption expenditures....    .20    .13    .06    .09    .16    .10    .21    .29    .22    .13    .21    .01    .17    .11    .19    .06   -.05   -.02    .04
        Gross investment............    .06    .08   -.01    .28   -.15    .05    .08    .20    .40   -.88    .50    .31   -.09    .09   -.01   -.12   -.05    .27   -.10

Addenda:
    Goods...........................   -.71    .71   1.40   -.92   3.64  -1.19    .10  -1.17  -2.08  -1.40   1.38   2.54   -.37   2.12   -.92   1.37    .75   5.67   2.30
    Services........................   1.26   1.77   1.50   1.40   2.63    .80   1.95    .85   1.05    .77   1.61   2.25   2.38   1.37   2.02    .62   2.08   1.27   1.61
    Structures......................   -.04   -.29    .23    .51    .15   -.07    .03    .09    .38   -.65  -1.00   -.08   -.10   -.13    .19   -.02    .26   1.27    .23
    Motor vehicle output............   -.17    .38    .09    .21   -.62   -.73   -.47   -.53    .58    .05    .92    .39    .20    .37   -.18   -.23    .07    .82    .13
    Final sales of computers........    .14    .10    .31    .52    .47    .10    .19    .45   -.20   -.19    .22    .06    .06    .35    .26    .26    .25    .65    .29
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  See "Explanatory Note" at the end of the tables.

                                      Table 3.--Gross Domestic Product and Related Measures: Level and Change From Preceding Period
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Billions of current dollars                                      Billions of chained (2000) dollars
                                  ------------------------------------------------------  -------------------------------------------------------------------------------
                                                        Seasonally adjusted                                    Seasonally adjusted                Change from preceding
                                                          at annual rates                                        at annual rates                          period
                                            --------------------------------------------          --------------------------------------------  -------------------------
                                       2003r   IV 02     I 03    II 03   III 03    IV 03r    2003r   IV 02     I 03    II 03   III 03    IV 03r    2003r  III 03    IV 03r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 10,987.9 10,623.7 10,735.8 10,846.7 11,107.0 11,262.0 10,398.0 10,160.8 10,210.4 10,288.3 10,493.1 10,600.1    315.0    204.8    107.0

Personal consumption expenditures.  7,757.4  7,501.2  7,600.7  7,673.6  7,836.3  7,919.1  7,365.2  7,198.9  7,244.1  7,304.0  7,426.6  7,486.2    224.8    122.6     59.6

  Durable goods...................    941.6    907.3    898.2    926.2    975.1    967.0  1,027.5    963.8    965.0  1,005.1  1,069.1  1,070.8     70.3     64.0      1.7
    Motor vehicles and parts......    424.0    410.4    402.1    414.5    447.2    432.2    441.9    419.0    414.5    429.5    466.9    456.7     18.6     37.4    -10.2
    Furniture and household
     equipment....................    334.2    325.3    321.8    329.9    339.9    345.1    400.3    373.5    374.7    391.7    412.4    422.5     35.6     20.7     10.1
    Other.........................    183.4    171.6    174.3    181.8    188.0    189.7    187.3    173.0    177.6    185.9    191.4    194.5     17.1      5.5      3.1

  Nondurable goods................  2,209.7  2,119.2  2,175.7  2,170.8  2,230.0  2,262.2  2,121.0  2,061.8  2,090.5  2,096.9  2,134.3  2,162.4     77.4     37.4     28.1
    Food..........................  1,064.1  1,016.4  1,037.4  1,049.7  1,074.9  1,094.2    994.7    963.9    979.6    985.4  1,002.8  1,010.9     36.5     17.4      8.1
    Clothing and shoes............    311.2    306.4    304.8    307.5    315.1    317.3    334.4    323.4    325.7    331.9    339.5    340.6     15.3      7.6      1.1
    Gasoline, fuel oil, and other
     energy goods.................    210.3    193.0    222.4    196.9    209.2    212.7    198.9    201.0    203.1    192.9    194.7    204.8      -.4      1.8     10.1
    Other.........................    624.1    603.4    611.1    616.7    630.8    637.9    593.6    573.8    582.2    587.4    598.3    606.8     26.3     10.9      8.5

  Services........................  4,606.2  4,474.7  4,526.8  4,576.6  4,631.2  4,689.9  4,225.7  4,175.4  4,190.7  4,208.4  4,237.2  4,266.4     83.9     28.8     29.2
    Housing.......................  1,198.5  1,167.7  1,181.5  1,191.4  1,204.9  1,216.4  1,085.6  1,071.7  1,078.0  1,082.8  1,088.7  1,092.8     23.7      5.9      4.1
    Household operation...........    425.9    412.9    422.6    424.2    428.5    428.3    396.2    395.6    396.6    393.4    396.8    398.0      1.7      3.4      1.2
      Electricity and gas.........    164.2    156.0    163.1    163.9    165.8    164.0    145.1    147.9    148.0    143.1    144.5    144.9      -.1      1.4       .4
      Other household operation...    261.7    256.9    259.5    260.3    262.7    264.3    251.2    247.6    248.5    250.5    252.4    253.2      2.0      1.9       .8
    Transportation................    293.6    291.5    292.3    292.8    295.3    294.1    278.2    281.3    281.6    278.8    277.2    275.1     -6.6     -1.6     -2.1
    Medical care..................  1,302.4  1,239.8  1,263.1  1,289.2  1,315.1  1,342.3  1,190.0  1,154.8  1,169.3  1,182.4  1,196.9  1,211.4     57.9     14.5     14.5
    Recreation....................    319.2    309.7    312.6    317.2    321.3    325.7    291.1    287.5    287.5    290.1    291.9    294.8      6.3      1.8      2.9
    Other.........................  1,066.5  1,053.0  1,054.7  1,061.9  1,066.2  1,083.1    983.3    983.5    976.6    979.7    984.3    992.7       .1      4.6      8.4

Gross private domestic investment.  1,670.6  1,614.7  1,605.3  1,624.3  1,689.1  1,763.5  1,638.0  1,595.8  1,581.6  1,599.9  1,656.1  1,714.6     66.0     56.2     58.5

  Fixed investment................  1,673.0  1,594.6  1,606.2  1,630.1  1,699.5  1,756.0  1,635.2  1,573.5  1,577.7  1,601.4  1,661.0  1,700.6     69.4     59.6     39.6
    Nonresidential................  1,110.6  1,074.3  1,071.8  1,086.9  1,124.4  1,159.2  1,125.5  1,088.9  1,087.3  1,105.8  1,139.5  1,169.4     32.9     33.7     29.9
      Structures..................    259.2    256.3    256.1    259.2    259.8    261.9    237.5    239.0    236.5    238.8    237.7    236.9    -11.5     -1.1      -.8
      Equipment and software......    851.3    817.9    815.8    827.7    864.6    897.3    893.5    853.9    855.0    871.6    907.7    939.7     46.8     36.1     32.0
        Information processing
         equipment and software...    463.8    424.1    436.2    451.2    477.0    490.7    522.7    468.2    487.2    506.4    537.7    559.5     63.4     31.3     21.8
          Computers and peripheral
           equipment..............     97.2     84.9     86.8     93.5    101.8    106.8    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    181.1    169.8    173.4    177.6    185.1    188.4    182.4    169.7    174.4    178.6    185.0    191.5     14.9      6.4      6.5
          Other...................    185.4    169.3    175.9    180.1    190.2    195.5    194.8    177.1    184.3    188.6    200.2    206.0     17.7     11.6      5.8
        Industrial equipment......    133.6    135.6    133.4    133.2    134.1    133.5    131.1    133.9    131.4    131.0    131.4    130.6     -5.0       .4      -.8
        Transportation equipment..    121.3    128.8    119.8    115.3    117.8    132.2    116.6    127.2    117.4    115.1    113.7    120.1    -11.6     -1.4      6.4
        Other equipment...........    132.7    129.4    126.3    128.1    135.7    140.9    128.5    126.1    122.6    123.9    131.1    136.3      4.2      7.2      5.2
    Residential...................    562.4    520.3    534.4    543.2    575.1    596.9    505.3    481.0    486.4    491.7    516.7    526.6     35.0     25.0      9.9

  Change in private inventories...     -2.4     20.2      -.9     -5.8    -10.5      7.5      -.7     21.5      1.6     -4.5     -9.1      9.0     -6.4     -4.6     18.1
    Farm..........................     -2.3     -4.8       .2     -2.7     -4.3     -2.3     -1.1     -3.5      1.2     -2.0     -2.8      -.7      2.2      -.8      2.1
    Nonfarm.......................      -.1     25.0     -1.2     -3.0     -6.2      9.8       .5     25.4       .3     -2.4     -5.9     10.0     -8.8     -3.5     15.9

Net exports of goods and services.   -495.0   -476.1   -487.6   -505.5   -490.6   -496.2   -509.1   -511.5   -490.0   -526.0   -505.2   -515.2    -38.5     20.8    -10.0

  Exports.........................  1,048.9  1,017.2  1,021.0  1,020.2  1,048.5  1,105.8  1,034.7  1,017.5  1,012.4  1,009.6  1,033.7  1,083.1     20.5     24.1     49.4
    Goods.........................    725.5    698.3    707.6    707.7    722.1    764.5    720.5    703.2    706.5    703.5    718.2    753.7     13.3     14.7     35.5
    Services......................    323.4    318.8    313.3    312.5    326.4    341.3    314.0    314.0    305.7    305.9    315.2    329.1      7.2      9.3     13.9

  Imports.........................  1,543.8  1,493.3  1,508.5  1,525.7  1,539.0  1,602.0  1,543.8  1,529.0  1,502.5  1,535.7  1,538.9  1,598.3     59.1      3.2     59.4
    Goods.........................  1,283.3  1,240.8  1,254.2  1,272.4  1,275.6  1,331.2  1,308.6  1,288.1  1,266.2  1,307.4  1,302.4  1,358.2     60.2     -5.0     55.8
    Services......................    260.5    252.5    254.3    253.3    263.5    270.8    236.3    241.2    236.5    229.8    237.2    241.5      -.1      7.4      4.3

Government consumption expenditures
 and gross investment.............  2,054.8  1,983.9  2,017.4  2,054.2  2,072.1  2,075.6  1,898.4  1,870.8  1,869.0  1,902.8  1,911.1  1,910.7     61.5      8.3      -.4

  Federal.........................    757.2    710.0    723.0    764.7    769.6    771.5    704.3    675.8    675.5    712.0    714.3    715.5     56.3      2.3      1.2
    National defense..............    497.3    461.1    463.3    507.3    507.2    511.5    463.0    439.5    433.2    472.8    471.2    474.7     44.2     -1.6      3.5
      Consumption expenditures....    437.3    404.6    408.6    447.5    443.7    449.5    401.9    382.0    377.3    411.8    406.9    411.7     39.7     -4.9      4.8
      Gross investment............     60.0     56.6     54.7     59.8     63.5     62.0     61.0     57.4     55.7     60.8     64.5     63.0      4.4      3.7     -1.5
    Nondefense....................    259.9    248.9    259.7    257.4    262.4    260.0    241.4    236.4    242.4    239.3    243.1    240.8     12.2      3.8     -2.3
      Consumption expenditures....    225.6    216.1    227.3    221.4    228.5    225.2    207.1    203.6    209.9    203.4    209.3    206.0     10.8      5.9     -3.3
      Gross investment............     34.3     32.7     32.4     36.0     33.8     34.8     34.3     32.7     32.4     36.0     33.8     34.9      1.4     -2.2      1.1

  State and local.................  1,297.6  1,273.9  1,294.5  1,289.6  1,302.5  1,304.0  1,194.6  1,195.3  1,193.8  1,191.4  1,197.4  1,195.9      5.5      6.0     -1.5
      Consumption expenditures....  1,045.6  1,024.2  1,045.8  1,040.9  1,046.3  1,049.5    956.9    956.4    957.8    956.6    956.0    957.1      6.4      -.6      1.1
      Gross investment............    252.0    249.7    248.7    248.7    256.2    254.5    237.8    239.0    236.0    234.7    241.5    238.8      -.8      6.8     -2.7

Residual..........................    .....    .....    .....    .....    .....    .....    -18.6     -2.5     -4.5    -11.5    -27.4    -31.1    .....    .....    .....

Addenda:
  Final sales of domestic product. 10,990.3 10,603.6 10,736.7 10,852.4 11,117.4 11,254.5 10,395.0 10,138.9 10,206.4 10,289.5 10,497.7 10,586.4    318.1    208.2     88.7
  Gross domestic purchases........ 11,482.8 11,099.9 11,223.4 11,352.2 11,597.5 11,758.2 10,903.6 10,668.0 10,697.6 10,809.9 10,995.4 11,111.5    352.1    185.5    116.1
  Final sales to domestic
   purchasers..................... 11,485.2 11,079.7 11,224.3 11,357.9 11,608.0 11,750.7 10,900.6 10,646.1 10,693.5 10,811.1 11,000.1 11,097.8    355.2    189.0     97.7

  Gross domestic product.......... 10,987.9 10,623.7 10,735.8 10,846.7 11,107.0 11,262.0 10,398.0 10,160.8 10,210.4 10,288.3 10,493.1 10,600.1    315.0    204.8    107.0
  Plus: Income receipts from
   the rest of the world..........    317.3    304.8    296.8    299.5    312.1    360.7    301.6    293.7    283.4    285.6    296.1    341.4     11.6     10.5     45.3
  Less: Income payments to
   the rest of the world..........    273.6    266.9    269.0    266.2    274.3    284.8    260.1    256.1    256.4    253.8    260.7    269.6     -8.2      6.9      8.9
  Equals: Gross national product.. 11,031.6 10,661.6 10,763.7 10,880.0 11,144.8 11,337.9 10,439.5 10,198.5 10,237.6 10,320.2 10,528.6 10,671.7    334.5    208.4    143.1

  Net domestic product............  9,677.0  9,323.3  9,430.1  9,543.3  9,797.9  9,936.7  9,087.5  8,858.4  8,903.4  8,983.4  9,181.7  9,281.3    289.0    198.3     99.6
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  Note.--Users are cautioned that particularly for components that
exhibit rapid change in prices relative to other prices in the
economy, the chained-dollar estimates should not be used to measure
the component's relative importance or its contribution to the
growth rate of more aggregate series.  For accurate estimates of
the contributions to percent changes in real GDP, use table 2.
  See "Explanatory Note" at the end of the tables.

                              Table 4.--Price Indexes for Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003r  I 00  II 00 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.4    1.5    1.7    3.4    2.0    1.9    1.8    3.2    3.2    1.6    1.6    1.1    1.5    1.5    1.7    2.3    1.1    1.6    1.5

Personal consumption expenditures...    2.0    1.4    1.8    3.5    2.0    1.9    1.8    3.2    2.5     .5     .4     .7    2.9    2.0    1.7    2.8     .5    1.8    1.0
  Durable goods.....................   -1.9   -2.9   -3.7   -1.8    -.5   -2.5   -1.0   -1.3   -3.1   -2.8   -2.2   -3.5   -2.9   -3.0   -3.0   -4.4   -3.9   -4.0   -3.9
  Nondurable goods..................    1.5     .5    2.1    5.2    3.7    3.4    1.4    1.3    3.7    -.9   -4.3    -.1    5.7    1.4    1.0    5.1   -2.1    3.8     .5
  Services..........................    3.2    2.7    2.9    3.9    1.7    2.1    2.6    5.1    3.2    1.8    3.3    2.0    2.8    3.4    3.1    3.2    2.7    2.0    2.3

Gross private domestic investment...    1.1     .0     .9    2.0    1.2    1.9     .8     .3    1.3    2.3     .0    -.7    -.7   -1.0    1.6    1.3     .0    2.0    3.6
  Fixed investment..................    1.1     .1    1.1    2.3    1.2    1.9     .9     .1    1.6    2.4     .0    -.8    -.7    -.7    1.7    1.9     .0    2.1    3.7
    Nonresidential..................    -.2    -.9    -.2     .6     .3    1.4     .0   -1.8     .2     .6   -1.2   -1.3   -1.5   -1.5     .4    -.3   -1.2    1.6    1.8
      Structures....................    5.5    1.4    2.1    4.8    3.6    4.5    5.0    6.5    6.9    6.3    1.2    -.9     .5     .3    1.1    3.8    1.1    2.7    4.7
      Equipment and software........   -2.2   -1.7    -.9    -.8    -.8     .4   -1.7   -4.7   -2.1   -1.6   -2.1   -1.4   -2.1   -2.1     .2   -1.6   -1.8    1.2    1.0
    Residential.....................    4.6    2.4    3.9    7.1    3.9    3.2    3.4    5.3    5.1    7.0    2.9     .3    1.1     .9    4.5    6.4    2.2    3.1    7.5
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    -.4    -.4    2.1    2.7    2.1     .9     .4     .1   -1.2   -2.1   -3.6   -1.2    2.9    3.3     .6    3.6     .8    1.6    2.6
    Goods...........................    -.7    -.7    2.0    1.3    1.6     .3     .4    -.1   -1.6   -2.6   -3.8   -1.4    2.1    3.3     .6    3.5    1.7    -.2    3.6
    Services........................     .4     .3    2.2    6.2    3.5    2.5     .6     .6    -.3   -1.0   -3.0    -.9    4.6    3.2     .6    3.8   -1.3    5.7     .4
  Imports...........................   -2.5   -1.0    3.6    5.9     .7    4.2     .7   -2.8   -6.0   -5.3   -9.8   -1.6   10.5    3.7     .8   11.7   -4.1    2.7     .9
    Goods...........................   -3.0   -1.7    2.9    6.8    1.2    4.5     .8   -3.7   -6.6   -6.6  -11.1   -2.1   10.7    2.7     .5   11.8   -6.8    2.6     .3
    Services........................     .2    2.5    7.4    1.3   -2.0    2.5     .3    2.1   -3.0    1.4   -2.9     .7    9.3    8.6    2.0   11.3   10.4    3.3    3.8

Government consumption expenditures
 and gross investment...............    2.6    2.6    2.9    6.6    1.7    4.5    2.7    2.7    2.2    2.0    1.4    3.6    3.3    2.2    1.8    7.3     .1    1.7     .7
  Federal...........................    2.1    2.7    2.5    7.2   -1.1    5.0    1.6    2.0    1.6    2.4    1.7    5.9    2.3    1.2    -.5    7.7    1.4    1.3     .3
    National defense................    2.2    2.5    2.6    8.2    -.2    3.6     .9    3.6    1.6    2.4     .8    5.2    2.3    1.8    -.6    8.0    1.2    1.3     .4
    Nondefense......................    1.9    3.2    2.3    5.4   -2.6    7.5    2.7    -.7    1.8    2.3    3.6    7.3    2.1     .2    -.4    7.2    1.6    1.3     .1
  State and local...................    2.9    2.5    3.1    6.3    3.2    4.2    3.2    3.0    2.5    1.8    1.3    2.4    3.8    2.7    3.0    7.1    -.7    2.0    1.0

Addenda:
  Final sales of domestic product...    2.4    1.5    1.7    3.4    2.0    1.9    1.8    3.1    3.2    1.6    1.6    1.1    1.4    1.5    1.8    2.4    1.1    1.6    1.5
  Gross domestic purchases..........    2.0    1.4    1.9    3.8    1.8    2.3    1.8    2.6    2.3    1.0     .5    1.0    2.4    1.6    1.7    3.4     .4    1.8    1.3
  Final sales to domestic
   purchasers.......................    2.0    1.4    1.9    3.8    1.8    2.3    1.8    2.6    2.3    1.0     .5     .9    2.4    1.6    1.7    3.5     .4    1.8    1.4
  Gross national product (GNP)......    2.4    1.5    1.7    3.3    2.0    1.9    1.8    3.2    3.1    1.6    1.6    1.1    1.5    1.5    1.7    2.3    1.1    1.7    1.5

  Implicit price deflators:
    GDP.............................    2.4    1.5    1.7    3.6    1.7    2.1    1.6    3.1    3.2    1.6    1.9     .7    1.9    1.0    1.8    2.3    1.1    1.6    1.5
    Gross domestic purchases........    2.0    1.4    1.9    4.1    1.6    2.5    1.6    2.6    2.3    1.0     .8     .6    2.9    1.2    1.8    3.4     .4    1.8    1.3
    GNP.............................    2.4    1.5    1.7    3.6    1.7    2.1    1.6    3.1    3.2    1.6    1.9     .7    2.0    1.0    1.8    2.3    1.1    1.6    1.5
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  See "Explanatory Note" at the end of the tables.

                                      Table 5.--Real Gross Domestic Product, Quantity Indexes
                                                     [Index numbers, 2000=100]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Seasonally adjusted
                                                                                ---------------------------------------------------
                                                  2001       2002       2003r     IV 02       I 03      II 03     III 03      IV 03r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    100.506    102.710    105.918    103.502    104.008    104.801    106.887    107.977

Personal consumption expenditures..........    102.452    105.951    109.286    106.819    107.489    108.378    110.197    111.081
  Durable goods............................    104.144    110.868    119.017    111.638    111.779    116.420    123.834    124.037
  Nondurable goods.........................    101.852    104.949    108.926    105.885    107.358    107.685    109.607    111.053
  Services.................................    102.382    105.420    107.555    106.276    106.664    107.115    107.849    108.591

Gross private domestic investment..........     91.650     90.580     94.386     91.953     91.135     92.186     95.424     98.800
  Fixed investment.........................     96.826     93.258     97.392     93.718     93.968     95.378     98.932    101.290
    Nonresidential.........................     95.517     88.683     91.349     88.378     88.248     89.751     92.485     94.913
      Structures...........................     97.465     79.492     75.828     76.304     75.523     76.244     75.906     75.638
      Equipment and software...............     94.825     92.144     97.234     92.927     93.047     94.851     98.779    102.260
    Residential............................    100.351    105.228    113.073    107.629    108.828    110.021    115.616    117.827
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     94.773     92.512     94.385     92.818     92.353     92.097     94.290     98.800

Imports of goods and services..............     97.377    100.609    104.612    103.610    101.810    104.059    104.277    108.302

Government consumption expenditures and
 gross investment..........................    102.750    106.697    110.271    108.666    108.563    110.527    111.008    110.986
  Federal..................................    103.746    111.958    121.690    116.764    116.713    123.025    123.406    123.616
  State and local..........................    102.248    104.047    104.533    104.593    104.463    104.248    104.779    104.642

Addenda:
  Final sales of domestic product..........    101.441    103.242    106.501    103.877    104.569    105.420    107.553    108.462
  Gross domestic purchases.................    100.672    103.482    106.935    104.625    104.915    106.016    107.836    108.974
  Final sales to domestic purchasers.......    101.575    103.998    107.502    104.992    105.459    106.619    108.483    109.446
  Gross national product...................    100.462    102.527    105.921    103.476    103.873    104.711    106.825    108.277
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  See "Explanatory Note" at the end of the tables.

                                        Table 6.--Price Indexes for Gross Domestic Product
                                                     [Index numbers, 2000=100]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Seasonally adjusted
                                                                                ---------------------------------------------------
                                                  2001       2002       2003r     IV 02       I 03      II 03     III 03      IV 03r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    102.376    103.949    105.686    104.571    105.163    105.440    105.870    106.270

Personal consumption expenditures..........    102.039    103.429    105.325    104.203    104.927    105.065    105.522    105.787
  Durable goods............................     98.086     95.208     91.682     94.136     93.074     92.147     91.207     90.298
  Nondurable goods.........................    101.530    102.075    104.179    102.789    104.079    103.529    104.488    104.618
  Services.................................    103.168    105.946    109.007    107.174    108.028    108.758    109.306    109.935

Gross private domestic investment..........    101.070    101.119    102.064    101.259    101.586    101.589    102.093    102.988
  Fixed investment.........................    101.087    101.155    102.296    101.341    101.808    101.796    102.319    103.260
    Nonresidential.........................     99.770     98.859     98.669     98.658     98.579     98.293     98.678     99.124
      Structures...........................    105.518    106.974    109.168    107.274    108.268    108.559    109.288    110.556
      Equipment and software...............     97.786     96.121     95.275     95.781     95.404     94.961     95.251     95.483
    Residential............................    104.628    107.105    111.263    108.184    109.881    110.485    111.321    113.363
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     99.628     99.273    101.354     99.964    100.842    101.044    101.434    102.094

Imports of goods and services..............     97.537     96.519    100.031     97.694    100.435     99.381    100.042    100.265

Government consumption expenditures and
 gross investment..........................    102.587    105.207    108.246    106.055    107.951    107.966    108.433    108.635
  Federal..................................    102.065    104.858    107.507    105.066    107.032    107.399    107.755    107.842
  State and local..........................    102.853    105.382    108.627    106.580    108.435    108.246    108.778    109.049

Addenda:
  Final sales of domestic product..........    102.381    103.955    105.723    104.585    105.198    105.474    105.906    106.313
  Gross domestic purchases.................    101.974    103.374    105.327    104.065    104.934    105.031    105.496    105.847
  Final sales to domestic purchasers.......    101.978    103.379    105.362    104.077    104.968    105.062    105.531    105.888
  Gross national product...................    102.372    103.936    105.684    104.556    105.156    105.438    105.872    106.268

  Implicit price deflators:
    Gross domestic product.................    102.373    103.945    105.673    104.556    105.146    105.427    105.851    106.244
    Final sales of domestic product........    102.381    103.955    105.726    104.583    105.196    105.471    105.904    106.311
    Gross domestic purchases...............    101.971    103.370    105.312    104.048    104.915    105.017    105.476    105.820
    Final sales to domestic purchasers.....    101.978    103.379    105.363    104.072    104.964    105.058    105.526    105.883
    Gross national product.................    102.368    103.932    105.671    104.541    105.138    105.425    105.853    106.243
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  See "Explanatory Note" at the end of the tables.

                                               Table 7.--Real Gross Domestic Product: Percent Change from Preceding Year
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           1988    1989    1990    1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     4.1     3.5     1.9     -.2     3.3     2.7     4.0     2.5     3.7     4.5     4.2     4.5     3.7      .5     2.2     3.1

Personal consumption expenditures......     4.1     2.8     2.0      .2     3.3     3.3     3.7     2.7     3.4     3.8     5.0     5.1     4.7     2.5     3.4     3.1
  Durable goods........................     6.0     2.2     -.3    -5.6     5.9     7.8     8.4     4.4     7.8     8.6    11.3    11.7     7.3     4.1     6.5     7.4
  Nondurable goods.....................     3.3     2.8     1.6     -.2     2.0     2.7     3.5     2.2     2.6     2.7     4.0     4.6     3.8     1.9     3.0     3.8
  Services.............................     4.0     3.0     2.9     1.7     3.5     2.8     2.9     2.6     2.9     3.3     4.2     4.0     4.5     2.4     3.0     2.0

Gross private domestic investment......     2.4     4.0    -3.4    -8.1     8.1     8.9    13.6     3.1     8.9    12.4     9.8     7.8     5.7    -8.4    -1.2     4.2
  Fixed investment.....................     3.3     3.0    -2.1    -6.5     5.9     8.6     9.3     6.5     9.0     9.2    10.2     8.3     6.5    -3.2    -3.7     4.4
    Nonresidential.....................     5.2     5.6      .5    -5.4     3.2     8.7     9.2    10.5     9.3    12.1    11.1     9.2     8.7    -4.5    -7.2     3.0
      Structures.......................      .6     2.0     1.5   -11.1    -6.0     -.7     1.8     6.4     5.6     7.3     5.1     -.4     6.8    -2.5   -18.4    -4.6
      Equipment and software...........     7.5     7.3      .0    -2.6     7.3    12.5    11.9    12.0    10.6    13.8    13.3    12.7     9.4    -5.2    -2.8     5.5
    Residential........................    -1.0    -3.0    -8.6    -9.6    13.8     8.2     9.6    -3.2     8.0     1.9     7.6     6.0      .8      .4     4.9     7.5
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................    16.0    11.5     9.0     6.6     6.9     3.2     8.7    10.1     8.4    11.9     2.4     4.3     8.7    -5.2    -2.4     2.0
    Goods..............................    18.8    11.9     8.4     6.9     7.5     3.3     9.7    11.7     8.8    14.3     2.2     3.8    11.2    -6.1    -4.0     1.9
    Services...........................     9.0    10.3    10.5     6.0     5.5     3.2     6.3     6.3     7.2     5.9     2.9     5.6     2.9    -3.1     1.4     2.3
  Imports..............................     3.9     4.4     3.6     -.6     7.0     8.8    11.9     8.0     8.7    13.6    11.6    11.5    13.1    -2.6     3.3     4.0
    Goods..............................     4.0     4.3     3.0     -.1     9.3    10.1    13.3     9.0     9.3    14.4    11.7    12.4    13.5    -3.2     3.7     4.8
    Services...........................     3.4     4.9     6.5    -2.6    -2.6     2.9     5.7     3.3     5.5     9.4    11.4     6.9    11.1      .4     1.4     -.1

Government consumption expenditures
 and gross investment..................     1.3     2.6     3.2     1.1      .5     -.9      .0      .5     1.0     1.9     1.9     3.9     2.1     2.8     3.8     3.3
  Federal..............................    -1.6     1.5     2.0     -.2    -1.7    -4.2    -3.7    -2.7    -1.2    -1.0    -1.1     2.2      .9     3.7     7.9     8.7
    National defense...................     -.5     -.5      .0    -1.1    -5.0    -5.6    -4.9    -3.8    -1.4    -2.8    -2.1     1.9     -.5     3.9     8.9    10.6
    Nondefense.........................    -5.1     8.3     8.3     2.4     6.9     -.7    -1.2     -.4     -.7     2.6      .7     2.8     3.5     3.5     6.2     5.3
  State and local......................     3.7     3.4     4.1     2.1     2.2     1.4     2.6     2.6     2.3     3.6     3.6     4.7     2.7     2.2     1.8      .5

Addenda:
  Final sales of domestic product......     4.3     3.4     2.1      .1     3.0     2.6     3.4     3.0     3.7     4.0     4.2     4.5     3.8     1.4     1.8     3.2
  Gross domestic purchases.............     3.2     3.0     1.4     -.8     3.3     3.2     4.4     2.4     3.8     4.8     5.3     5.3     4.4      .7     2.8     3.3
  Final sales to domestic purchasers...     3.4     2.8     1.6     -.6     3.1     3.2     3.8     2.8     3.8     4.3     5.3     5.4     4.5     1.6     2.4     3.4
  Gross national product...............     4.2     3.5     2.0     -.3     3.3     2.7     3.9     2.6     3.7     4.4     4.0     4.6     3.7      .5     2.1     3.3
  Real disposable personal income......     4.3     2.8     1.9      .5     3.4     1.0     2.7     2.8     3.0     3.5     5.8     3.0     4.8     1.8     3.8     2.6

  Price indexes:
    Gross domestic purchases...........     3.4     3.8     4.1     3.3     2.3     2.2     2.1     2.1     1.8     1.4      .6     1.6     2.5     2.0     1.4     1.9
    Gross domestic purchases excluding
     food and energy...................     3.7     3.6     3.7     3.5     2.6     2.3     2.2     2.2     1.5     1.3     1.0     1.4     1.9     1.9     1.7     1.4
    GDP................................     3.4     3.8     3.9     3.5     2.3     2.3     2.1     2.0     1.9     1.7     1.1     1.4     2.2     2.4     1.5     1.7
    GDP excluding food and energy......     3.4     3.6     3.7     3.6     2.5     2.4     2.2     2.1     1.7     1.7     1.2     1.5     2.0     2.1     1.8     1.4
    Personal consumption expenditures..     4.0     4.4     4.6     3.6     2.9     2.3     2.1     2.1     2.2     1.7      .9     1.7     2.5     2.0     1.4     1.8
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the third
quarter of 2003.

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           I 00   II 00  III 00   IV 00    I 01   II 01  III 01   IV 01    I 02   II 02  III 02   IV 02    I 03   II 03  III 03r  IV 03r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     4.1     4.8     3.5     2.2     1.9      .2      .0      .0     1.2     1.8     3.0     2.8     2.1     2.4     3.6     4.3

Personal consumption expenditures......     5.5     4.6     4.5     4.1     2.6     2.5     2.0     2.7     3.6     3.7     3.7     2.7     2.3     2.5     3.7     4.0
  Durable goods........................    13.7     5.9     5.2     4.7     -.4     4.5     3.2     9.4     9.3     7.0     8.1     1.8     1.5     5.6    11.0    11.1
  Nondurable goods.....................     3.7     4.1     4.3     3.0     3.0     1.3     1.5     1.7     3.1     3.5     2.8     2.8     2.7     2.9     4.7     4.9
  Services.............................     4.7     4.5     4.4     4.5     3.1     2.7     2.0     1.8     2.6     3.1     3.2     2.9     2.3     1.7     1.9     2.2

Gross private domestic investment......     4.4    11.2     5.8     1.4      .3   -10.1    -9.7   -13.5    -8.6    -3.3     1.6     6.5     2.8     2.8     3.6     7.4
  Fixed investment.....................     7.8     7.7     5.5     5.1     1.6    -3.0    -4.2    -7.0    -7.0    -4.6    -3.1      .2     1.1     2.4     6.1     8.1
    Nonresidential.....................     9.4     9.9     7.9     7.8     3.1    -4.0    -6.5   -10.2   -10.8    -8.2    -6.4    -2.8    -1.2     1.3     4.6     7.4
      Structures.......................     2.7     6.3     9.6     8.8     5.3     -.4    -2.1   -12.4   -17.0   -19.0   -22.6   -14.9    -9.8    -5.3    -1.9     -.9
      Equipment and software...........    11.7    11.1     7.3     7.5     2.4    -5.2    -8.2    -9.4    -8.5    -4.0      .1     1.6     1.8     3.4     6.7    10.0
    Residential........................     3.7     1.9     -.7    -1.9    -2.2     -.4     2.4     1.7     3.2     4.4     4.7     7.1     6.1     5.0     9.2     9.5
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     8.2    10.2    10.1     6.5     3.7    -2.8    -9.8   -11.5    -9.5    -4.2     1.6     3.3     1.7     -.7      .6     6.4
    Goods..............................    10.2    12.6    13.7     8.5     4.8    -3.5   -12.2   -12.7   -12.1    -4.9     1.2      .8     2.0    -1.3     -.3     7.2
    Services...........................     3.6     4.5     1.6     1.8      .9    -1.3    -3.5    -8.3    -3.0    -2.5     2.6     9.3     1.1      .7     2.6     4.8
  Imports..............................    13.6    14.0    13.8    11.2     5.2     -.9    -6.8    -7.4    -4.0     2.2     6.2     9.4     5.3     3.5     2.6     4.5
    Goods..............................    14.3    14.6    14.1    11.3     5.3    -2.1    -7.5    -7.9    -4.8     3.3     7.1     9.9     6.4     4.6     2.9     5.4
    Services...........................    10.1    11.1    12.4    10.6     4.7     5.1    -3.3    -4.5      .5    -3.3     1.9     6.7      .2    -1.8     1.2      .1

Government consumption expenditures
 and gross investment..................     2.7     3.5     1.7      .4     2.6     2.7     2.1     3.6     3.3     2.9     4.6     4.5     3.3     4.1     3.9     2.1
  Federal..............................      .9     4.6      .3    -2.2     3.8     1.4     3.6     6.3     6.2     7.1     8.2    10.1     7.9    10.9    10.2     5.9
    National defense...................     -.4     3.6    -1.6    -3.5     4.4     1.0     3.6     6.6     6.8     8.5     9.1    10.9     7.2    14.4    12.7     8.0
    Nondefense.........................     3.4     6.3     3.9      .3     2.7     2.0     3.5     5.7     5.1     4.6     6.5     8.7     9.2     4.7     5.6     1.9
  State and local......................     3.6     2.9     2.4     1.7     2.0     3.3     1.4     2.3     1.9      .8     2.8     1.6      .8      .5      .5      .0

Addenda:
  Final sales of domestic product......     4.6     4.2     3.5     2.9     2.2     1.5     1.0     1.1     1.4     1.6     2.2     1.8     1.9     2.4     4.0     4.4
  Gross domestic purchases.............     4.9     5.5     4.2     3.0     2.2      .3      .0      .1     1.6     2.5     3.5     3.6     2.6     2.8     3.8     4.2
  Final sales to domestic purchasers...     5.4     4.9     4.2     3.6     2.4     1.6     1.0     1.3     1.8     2.2     2.8     2.7     2.3     2.8     4.1     4.2
  Gross national product...............     4.1     4.8     3.5     2.4     1.8      .1     -.2      .2     1.1     1.6     3.1     2.4     2.2     2.7     3.8     4.6
  Real disposable personal income......     4.4     4.9     5.7     4.4     2.0     1.0     2.6     1.3     4.0     5.4     2.2     3.5     1.6     1.7     3.7     3.6

  Price indexes:
    Gross domestic purchases...........     2.6     2.5     2.5     2.4     2.1     2.3     1.9     1.6     1.2     1.2     1.4     1.7     2.3     1.8     1.8     1.7
    Gross domestic purchases excluding
     food and energy...................     1.9     1.8     1.9     1.8     1.7     1.8     1.9     2.1     1.8     1.7     1.6     1.4     1.6     1.4     1.3     1.4
    GDP................................     2.1     2.1     2.3     2.2     2.2     2.5     2.4     2.4     1.9     1.4     1.4     1.4     1.7     1.6     1.7     1.6
    GDP excluding food and energy......     2.1     2.0     2.1     2.0     1.8     2.0     2.1     2.3     2.1     1.9     1.8     1.5     1.6     1.4     1.3     1.3
    Personal consumption expenditures..     2.7     2.5     2.4     2.3     2.2     2.3     2.0     1.6     1.0     1.1     1.5     1.8     2.4     1.8     1.7     1.5
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the third
quarter of 2003.

                     Table 9.--Relation of Gross Domestic Product, Gross National Product, and National Income
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2001       2002       2003r     IV 02       I 03      II 03     III 03r     IV 03r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,100.8   10,480.8   10,987.9   10,623.7   10,735.8   10,846.7   11,107.0   11,262.0

Plus: Income receipts from the rest of the
 world.....................................      319.0      299.1      317.3      304.8      296.8      299.5      312.1      360.7
Less: Income payments to the rest of the
 world.....................................      283.8      277.6      273.6      266.9      269.0      266.2      274.3      284.8

Equals: Gross national product.............   10,135.9   10,502.3   11,031.6   10,661.6   10,763.7   10,880.0   11,144.8   11,337.9

Less: Consumption of fixed capital.........    1,266.9    1,288.6    1,310.9    1,300.4    1,305.7    1,303.4    1,309.1    1,325.3
Less: Statistical discrepancy..............     -112.2      -77.2       17.8      -15.7       23.2       -8.3       38.2       18.3

Equals: National income....................    8,981.2    9,290.8    9,702.8    9,376.9    9,434.8    9,584.9    9,797.5    9,994.2
  Compensation of employees................    5,940.4    6,019.1    6,198.1    6,058.0    6,115.8    6,164.8    6,229.4    6,282.4
    Wage and salary accruals...............    4,942.9    4,974.6    5,095.6    4,999.1    5,034.6    5,070.8    5,118.8    5,158.3
    Supplements to wages and salaries......      997.6    1,044.5    1,102.4    1,058.8    1,081.2    1,093.9    1,110.6    1,124.0
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      770.6      797.7      846.9      812.2      813.5      838.8      860.9      874.3
  Rental income of persons with capital
   consumption adjustment..................      163.1      173.0      164.2      159.0      163.2      153.4      157.0      183.0
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................      770.4      904.2    1,069.9      934.9      927.1    1,022.8    1,124.2    1,205.6
  Net interest and miscellaneous payments..      568.4      582.4      583.2      589.7      589.3      581.7      579.9      581.8
  Taxes on production and imports less
   subsidies...............................      674.5      721.8      740.4      732.8      729.4      725.2      745.2      761.8
  Business current transfer payments.......       92.5       89.8       95.2       86.2       90.1       92.5       97.1      101.2
  Current surplus of government
   enterprises.............................        1.2        2.8        5.0        4.1        6.3        5.8        3.7        4.1

Addendum:
  Gross domestic income....................   10,213.0   10,558.0   10,970.0   10,639.4   10,712.7   10,855.0   11,068.8   11,243.6
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the third
quarter of 2003.

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2001       2002       2003r     IV 02       I 03      II 03     III 03r     IV 03r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    8,713.1    8,910.3    9,203.7    8,981.3    9,048.7    9,145.9    9,256.3    9,363.9

  Compensation of employees, received......    5,940.4    6,019.1    6,198.1    6,058.0    6,114.4    6,166.2    6,229.4    6,282.4
    Wage and salary disbursements..........    4,942.9    4,974.6    5,095.6    4,999.1    5,033.2    5,072.2    5,118.8    5,158.3
    Supplements to wages and salaries......      997.6    1,044.5    1,102.4    1,058.8    1,081.2    1,093.9    1,110.6    1,124.0
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      770.6      797.7      846.9      812.2      813.5      838.8      860.9      874.3
    Farm...................................       25.0       14.3       19.5       16.3       13.0       20.0       21.5       23.3
    Nonfarm................................      745.6      783.4      827.4      795.9      800.5      818.8      839.4      850.9
  Rental income of persons with capital
   consumption adjustment..................      163.1      173.0      164.2      159.0      163.2      153.4      157.0      183.0
  Personal income receipts on assets.......    1,374.9    1,378.5    1,393.3    1,392.0    1,388.6    1,390.2    1,389.2    1,405.2
    Personal interest income...............    1,003.7      982.4      964.6      981.2      970.6      964.9      957.0      965.7
    Personal dividend income...............      371.2      396.2      428.7      410.8      418.0      425.3      432.2      439.5
  Personal current transfer receipts.......    1,192.6    1,292.2    1,377.5    1,315.6    1,337.6    1,369.7    1,398.7    1,403.8

  Less: Contributions for government
   social insurance........................      728.5      750.3      776.2      755.5      768.7      772.3      779.0      784.7

Less: Personal current taxes...............    1,243.7    1,053.1      990.6    1,045.6    1,009.4    1,000.2      938.5    1,014.5

Equals: Disposable personal income.........    7,469.4    7,857.2    8,213.1    7,935.6    8,039.2    8,145.8    8,317.8    8,349.4

Less: Personal outlays.....................    7,342.2    7,674.0    8,043.0    7,789.2    7,888.3    7,956.7    8,118.5    8,208.6

Equals: Personal saving....................      127.2      183.2      170.0      146.4      151.0      189.0      199.3      140.8

  Personal saving as a percentage of
   disposable personal income..............        1.7        2.3        2.1        1.8        1.9        2.3        2.4        1.7

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    7,320.2    7,596.7    7,797.8    7,615.8    7,662.0    7,753.5    7,882.9    7,893.0
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the third
quarter of 2003.
  1. Personal income is also equal to national income less corporate
profits with inventory valuation and capital consumption adjustments,
taxes on production and imports less subsidies, contributions for
government social insurance, net interest and miscellaneous payments,
business current transfer payments, current surplus of government
enterprises, and wage accruals less disbursements, plus personal
income receipts on assets, and personal current transfer receipts.
  2. Equals disposable personal income deflated by the implicit price
deflator for personal consumption expenditures.

                                                   Table 11.--Corporate Profits: Level and Percent Change
-------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Billions of dollars                                 Percent change from preceding period
                                     ----------------------------------------------------------------  ------------------------------------------------------
                                                                       Seasonally adjusted                                       Quarterly        Quarter one
                                                                         at annual rates                                           rates             year ago
                                                              ---------------------------------------                 ------------------------------- -------
                                         2001    2002    2003   IV 02    I 03   II 03  III 03   IV 03    2002    2003    I 03   II 03  III 03   IV 03   IV 03
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
 valuation and capital consumption
 adjustments.........................   770.4   904.2 1,069.9   934.9   927.1 1,022.8 1,124.2 1,205.6    17.4    18.3     -.8    10.3     9.9     7.2    29.0

Less: Taxes on corporate income......   201.1   195.0   224.9   202.9   213.9   211.4   230.6   243.7    -3.0    15.3     5.5    -1.2     9.0     5.7    20.1

Equals: Profits after tax with
 inventory valuation and capital
 consumption adjustments.............   569.3   709.1   845.0   732.0   713.2   811.3   893.7   961.9    24.6    19.2    -2.6    13.8    10.1     7.6    31.4
  Net dividends......................   373.2   398.3   431.0   413.1   420.3   427.5   434.3   441.8     6.7     8.2     1.8     1.7     1.6     1.7     7.0
  Undistributed profits with
   inventory valuation and capital
   consumption adjustments...........   196.0   310.8   414.1   318.9   292.9   383.8   459.3   520.2    58.6    33.2    -8.2    31.0    19.7    13.2    63.1

Cash flow:
  Net cash flow with inventory
   valuation and capital consumption
   adjustments.......................   937.3 1,058.2 1,164.1 1,070.8 1,043.3 1,129.4 1,206.6 1,277.2    12.9    10.0    -2.6     8.3     6.8     5.9    19.3
    Undistributed profits with
     inventory valuation and capital
     consumption adjustments.........   196.0   310.8   414.1   318.9   292.9   383.8   459.3   520.2    58.6    33.2    -8.2    31.0    19.7    13.2    63.1
    Consumption of fixed capital.....   741.3   747.3   750.1   751.9   750.4   745.6   747.2   757.1      .8      .4     -.2     -.6      .2     1.3      .7

  Less: Inventory valuation
   adjustment........................     9.1    -2.2   -12.6   -10.8   -28.1     1.2    -1.8   -21.7   .....   .....   .....   .....   .....   .....   .....

  Equals: Net cash flow..............   928.2 1,060.4 1,176.7 1,081.7 1,071.4 1,128.2 1,208.4 1,298.9    14.2    11.0    -1.0     5.3     7.1     7.5    20.1

Addenda:
  Profits before tax (without
   inventory valuation and capital
   consumption adjustments)..........   696.8   745.0   856.4   795.0   809.0   792.5   865.9   958.1     6.9    15.0     1.8    -2.0     9.3    10.6    20.5
  Profits after tax (without
   inventory valuation and capital
   consumption adjustments)..........   495.6   549.9   631.5   592.1   595.0   581.0   635.4   714.5    11.0    14.8      .5    -2.4     9.4    12.4    20.7
  Inventory valuation adjustment.....     9.1    -2.2   -12.6   -10.8   -28.1     1.2    -1.8   -21.7   .....   .....   .....   .....   .....   .....   .....
  Capital consumption adjustment.....    64.5   161.5   226.2   150.7   146.3   229.2   260.1   269.2   150.3    40.1    -2.9    56.7    13.5     3.5    78.6
-------------------------------------------------------------------------------------------------------------------------------------------------------------

                                      Table 12.--Corporate Profits by Industry: Level and Change From Preceding Period
                                                                    [Billions of dollars]
-------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Level                                       Change from preceding period
                                             ----------------------------------------------------------------  ----------------------------------------------
                                                                        Seasonally adjusted at annual rates
                                                                      ---------------------------------------  ----------------------------------------------
                                                 2001    2002    2003   IV 02    I 03   II 03  III 03   IV 03    2002    2003    I 03   II 03  III 03   IV 03
-------------------------------------------------------------------------------------------------------------------------------------------------------------
    Corporate profits with inventory
     valuation and capital consumption
     adjustments.............................   770.4   904.2 1,069.9   934.9   927.1 1,022.8 1,124.2 1,205.6   133.8   165.7    -7.8    95.7   101.4    81.4

Domestic industries..........................   608.9   750.8   904.9   767.9   778.4   874.3   966.5 1,000.4   141.9   154.1    10.5    95.9    92.2    33.9
  Financial..................................   213.3   259.1   287.9   248.6   268.4   279.6   299.2   304.4    45.8    28.8    19.8    11.2    19.6     5.2
  Nonfinancial...............................   395.6   491.7   617.0   519.3   510.0   594.7   667.3   696.0    96.1   125.3    -9.3    84.7    72.6    28.7

Rest of the world............................   161.5   153.4   165.0   166.9   148.7   148.5   157.7   205.2    -8.1    11.6   -18.2     -.2     9.2    47.5
  Receipts from the rest of the world........   178.6   202.4   239.4   214.0   215.4   220.8   236.2   285.3    23.8    37.0     1.4     5.4    15.4    49.1
  Less: Payments to the rest of the world....    17.1    49.1    74.4    47.0    66.6    72.3    78.4    80.1    32.0    25.3    19.6     5.7     6.1     1.7

    Corporate profits with inventory
     valuation adjustment....................   705.9   742.7   843.8   784.2   780.9   793.6   864.2   936.4    36.8   101.1    -3.3    12.7    70.6    72.2

Domestic industries..........................   544.4   589.4   678.7   617.2   632.1   645.1   706.4   731.2    45.0    89.3    14.9    13.0    61.3    24.8
  Financial..................................   225.6   255.1   268.8   243.4   261.8   260.6   274.6   278.0    29.5    13.7    18.4    -1.2    14.0     3.4
    Federal Reserve banks....................    28.3    22.9    19.6    21.2    21.2    20.5    18.9    17.8    -5.4    -3.3      .0     -.7    -1.6    -1.1
    Other financial..........................   197.3   232.2   249.2   222.1   240.7   240.1   255.7   260.3    34.9    17.0    18.6     -.6    15.6     4.6

  Nonfinancial...............................   318.8   334.3   410.0   373.9   370.3   384.5   431.8   453.2    15.5    75.7    -3.6    14.2    47.3    21.4
    Utilities................................    24.1    22.0    24.4    22.8    28.1    21.1    21.5    26.7    -2.1     2.4     5.3    -7.0      .4     5.2
    Manufacturing............................    54.0    73.3    96.6    95.1    87.1    80.3    97.7   121.1    19.3    23.3    -8.0    -6.8    17.4    23.4
      Durable goods..........................   -24.9     8.8    20.2    25.2    17.1    13.9    19.4    30.3    33.7    11.4    -8.1    -3.2     5.5    10.9
        Fabricated metal products............     9.7     9.7    12.3    12.1     8.9    12.1    12.6    15.5      .0     2.6    -3.2     3.2      .5     2.9
        Machinery............................     3.2     1.5    -2.6    -1.3    -2.8    -2.7    -2.4    -2.5    -1.7    -4.1    -1.5      .1      .3     -.1
        Computer and electronic products.....   -49.4   -18.4    -2.6    -1.2    -5.6    -1.8    -1.5    -1.7    31.0    15.8    -4.4     3.8      .3     -.2
        Electrical equipment, appliances,
         and components......................     2.0     1.7    -1.7      .7      .7     -.9    -1.5    -5.1     -.3    -3.4      .0    -1.6     -.6    -3.6
        Motor vehicles, bodies and trailers,
         and parts...........................    -7.2    -1.0     1.1    -1.7     7.3    -1.9    -3.5     2.4     6.2     2.1     9.0    -9.2    -1.6     5.9
        Other durable goods..................    16.7    15.3    13.8    16.6     8.6     9.1    15.7    21.7    -1.4    -1.5    -8.0      .5     6.6     6.0

      Nondurable goods.......................    78.9    64.6    76.4    69.9    70.0    66.4    78.4    90.8   -14.3    11.8      .1    -3.6    12.0    12.4
        Food and beverage and tobacco
         products............................    27.5    32.8    32.8    32.4    32.4    30.6    31.8    36.6     5.3      .0      .0    -1.8     1.2     4.8
        Petroleum and coal products..........    29.9     6.4    22.3     8.7    20.2    20.6    19.5    28.9   -23.5    15.9    11.5      .4    -1.1     9.4
        Chemical products....................    13.8    17.5    18.7    19.4    18.9    15.8    23.7    16.6     3.7     1.2     -.5    -3.1     7.9    -7.1
        Other nondurable goods...............     7.7     7.9     2.5     9.4    -1.5     -.5     3.4     8.8      .2    -5.4   -10.9     1.0     3.9     5.4

    Wholesale trade..........................    51.6    49.1    45.4    47.9    39.8    42.6    51.0    48.2    -2.5    -3.7    -8.1     2.8     8.4    -2.8
    Retail trade.............................    71.1    76.7    80.1    73.9    72.9    85.0    84.3    78.2     5.6     3.4    -1.0    12.1     -.7    -6.1
    Transportation and warehousing...........     -.1    -2.3    11.9     2.4     5.6    12.9    14.7    14.5    -2.2    14.2     3.2     7.3     1.8     -.2
    Information..............................   -27.2   -20.2    -5.4   -12.6   -11.4    -8.0     2.3    -4.7     7.0    14.8     1.2     3.4    10.3    -7.0
    Other nonfinancial.......................   145.3   135.5   157.0   144.4   148.1   150.7   160.2   169.1    -9.8    21.5     3.7     2.6     9.5     8.9

Rest of the world............................   161.5   153.4   165.0   166.9   148.7   148.5   157.7   205.2    -8.1    11.6   -18.2     -.2     9.2    47.5
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Note.--Estimates in this table are based on the 1997 North
American Industry Classification System (NAICS).

                                  Table 13.--Gross Value Added of Nonfinancial Corporate Business
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2001       2002       2003      IV 02       I 03      II 03     III 03r     IV 03
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             Billions of dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business....................    5,299.3    5,410.6    5,646.8    5,479.3    5,479.2    5,581.7    5,720.2    5,806.0

Consumption of fixed capital...............      610.5      618.2      623.3      623.4      622.9      619.4      621.3      629.4

Net value added............................    4,688.9    4,792.4    5,023.5    4,856.0    4,856.3    4,962.3    5,098.9    5,176.6

  Compensation of employees................    3,597.0    3,570.1    3,663.9    3,596.8    3,612.6    3,640.5    3,683.1    3,719.3
    Wage and salary accruals...............    3,016.7    2,971.8    3,032.0    2,982.1    2,992.7    3,013.7    3,047.0    3,074.6
    Supplements to wages and salaries......      580.4      598.3      631.9      614.7      619.9      626.8      636.1      644.7
  Taxes on production and imports less
   subsidies...............................      440.3      464.5      480.8      471.5      474.1      469.0      486.0      494.2
  Net operating surplus....................      651.5      757.7      878.8      787.6      769.6      852.8      929.7      963.1
    Net interest and miscellaneous
     payments..............................      205.8      206.9      203.7      207.0      204.5      201.4      202.9      206.2
    Business current transfer payments.....       50.0       59.1       58.1       61.4       55.1       56.7       59.6       60.9
    Corporate profits with inventory
     valuation and capital consumption
     adjustments...........................      395.6      491.7      617.0      519.3      510.0      594.7      667.3      696.0
      Taxes on corporate income............      108.7      101.6      129.4      114.5      119.8      117.7      133.6      146.6
      Profits after tax with inventory
       valuation and capital consumption
       adjustments.........................      286.9      390.2      487.6      404.8      390.2      477.0      533.7      549.4
        Net dividends......................      248.2      257.2      271.8      265.7      265.8      274.8      270.8      275.7
        Undistributed profits with
         inventory valuation and capital
         consumption adjustments...........       38.7      133.0      215.8      139.1      124.4      202.2      262.9      273.7

Addenda:
  Profits before tax (without inventory
   valuation and capital consumption
   adjustments)............................      309.6      336.5      422.6      384.7      398.4      383.4      433.6      474.9
  Profits after tax (without inventory
   valuation and capital consumption
   adjustments)............................      200.9      234.9      293.1      270.3      278.6      265.7      299.9      328.3
  Inventory valuation adjustment...........        9.1       -2.2      -12.6      -10.8      -28.1        1.2       -1.8      -21.7
  Capital consumption adjustment...........       76.8      157.5      207.1      145.4      139.7      210.1      235.5      242.8
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business\1\.................    5,235.4    5,339.0    5,561.4    5,405.7    5,412.1    5,505.2    5,629.6    5,698.8

Consumption of fixed capital\2\............      609.0      624.1      636.8      635.0      634.5      630.9      639.4      642.5
Net value added\3\.........................    4,626.4    4,714.9    4,924.6    4,770.8    4,777.6    4,874.2    4,990.2    5,056.3
                                           ----------------------------------------------------------------------------------------
                                                                                   Dollars
                                           ----------------------------------------------------------------------------------------
Price, costs, and profits per unit of real
 gross value added of nonfinancial
 corporate business:

  Price per unit of real gross value added
   of nonfinancial corporate business\4\...      1.012      1.013      1.015      1.014      1.012      1.014      1.016      1.019

  Compensation of employees (unit labor
   cost)...................................       .687       .669       .659       .665       .668       .661       .654       .653

  Unit nonlabor cost.......................       .250       .253       .246       .252       .251       .245       .243       .243
    Consumption of fixed capital...........       .117       .116       .112       .115       .115       .113       .110       .110
    Taxes on production and imports less
     subsidies plus business current
     transfer payments.....................       .094       .098       .097       .099       .098       .095       .097       .097
    Net interest and miscellaneous payments       .039       .039       .037       .038       .038       .037       .036       .036

  Corporate profits with inventory valuation
   and capital consumption adjustments (unit
   profits from current production)........       .076       .092       .111       .096       .094       .108       .119       .122
    Taxes on corporate income..............       .021       .019       .023       .021       .022       .021       .024       .026
    Profits after tax with inventory
     valuation and capital consumption
     adjustments...........................       .055       .073       .088       .075       .072       .087       .095       .096
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the third
quarter of 2003.
  1. Effective December 10, 2003, the price index used to estimate
gross value added of nonfinancial corporate business has been
revised to reflect the 2000 reference year. Effective with the
estimates scheduled for release in July 2004, the current-dollar
value added will be deflated by a revised chain-type price index
calculated using gross value added price indexes for each
nonfinancial industry.
  2. Chained-dollar consumption of fixed capital of nonfinancial
corporate business is calculated as the product of the chain-type
quantity index and the 2000 current-dollar value of the corresponding
series, divided by 100.
  3. Chained-dollar net value added of nonfinancial corporate
business is the difference between the gross value added and the
consumption of fixed capital.
  4. The deflator for gross value added of nonfinancial corporate
business divided by 100.
Note.--Estimates in this table are based on the 1997 North
American Industry Classification System (NAICS).

                      Appendix Table A.--Real Gross Domestic Product and Related Aggregates and Price Indexes: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003r  I 00  II 00 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................     .5    2.2    3.1    1.0    6.4    -.5    2.1    -.2    -.6   -1.3    2.0    4.7    1.9    3.4    1.3    2.0    3.1    8.2    4.1

  Goods.............................   -2.0    2.1    4.3   -2.4   10.5   -3.3     .2   -3.4   -6.0   -4.1    4.1    7.7   -1.1    6.5   -2.8    4.3    2.2   18.3    7.1
  Services..........................    2.3    3.1    2.6    2.5    4.8    1.5    3.6    1.6    1.9    1.4    2.9    3.9    4.2    2.4    3.5    1.0    3.6    2.1    2.8
  Structures........................    -.4   -3.0    2.4    5.9    1.6    -.7     .4    1.0    4.0   -6.4   -9.6   -1.0   -1.1   -1.4    2.1    -.3    2.8   13.9    2.4

  Motor vehicle output..............   -4.8   11.4    2.7    5.2  -14.7  -18.1  -12.6  -14.6   19.1    1.5   30.2   11.3    5.5   10.8   -4.9   -6.4    2.1   26.6    3.7
  GDP excluding motor vehicle
   output...........................     .7    1.9    3.1     .9    7.4     .3    2.7     .3   -1.3   -1.4    1.1    4.5    1.8    3.1    1.5    2.3    3.1    7.6    4.2

  Final sales of computers\1\.......   13.6   11.1   41.0   62.4   49.6    9.2   18.6   52.2  -17.1  -17.9   27.2    5.0    6.6   50.9   34.8   34.6   32.8   93.4   32.3
  GDP excluding final sales of
   computers........................     .4    2.1    2.8     .5    6.0    -.6    1.9    -.7    -.4   -1.1    1.8    4.7    1.8    3.0    1.0    1.7    2.8    7.6    3.9

  Farm gross value added\2\.........   -4.2    1.9    3.2   65.1    5.2    4.8  -18.2   -2.0  -15.8  -16.6  100.1  -64.2   94.9   50.5   -1.5  -39.5   59.0   -3.2  -16.6

  Nonfarm business gross value
   added\3\.........................     .1    2.3    3.7    -.1    7.5    -.8    2.2    -.8   -1.0   -2.5    1.6    6.7     .8    4.0    1.6    2.4    3.8   10.4    4.2

Price indexes:
  GDP...............................    2.4    1.5    1.7    3.4    2.0    1.9    1.8    3.2    3.2    1.6    1.6    1.1    1.5    1.5    1.7    2.3    1.1    1.6    1.5
  GDP excluding food and energy.....    2.1    1.8    1.4    3.0    1.6    1.7    1.7    2.3    2.3    2.1    2.6    1.4    1.6    1.5    1.6    1.7     .7    1.3    1.4
  GDP excluding final sales of
   computers........................    2.7    1.8    1.8    3.6    2.2    2.1    1.9    3.7    3.4    1.8    1.8    1.4    1.6    1.7    1.9    2.5    1.2    1.8    1.6

  Gross domestic purchases..........    2.0    1.4    1.9    3.8    1.8    2.3    1.8    2.6    2.3    1.0     .5    1.0    2.4    1.6    1.7    3.4     .4    1.8    1.3
  Gross domestic purchases excluding
   food and energy..................    1.9    1.7    1.4    2.9    1.3    1.6    1.4    2.3    2.0    1.9    2.3    1.2    1.5    1.5    1.5    1.8     .9    1.3    1.5
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    2.3    1.6    2.1    4.0    2.1    2.5    2.0    3.2    2.6    1.3     .8    1.2    2.6    1.8    2.0    3.6     .5    2.0    1.5

  Personal consumption expenditures.    2.0    1.4    1.8    3.5    2.0    1.9    1.8    3.2    2.5     .5     .4     .7    2.9    2.0    1.7    2.8     .5    1.8    1.0
  Personal consumption expenditures
   excluding food and energy........    1.9    1.7    1.2    2.4    1.3     .9    1.5    2.8    1.9    1.3    2.5    1.0    1.9    2.0    1.5     .9     .8    1.0    1.2
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  1. For some components of final sales of computers, includes
computer parts.
  2. Farm output less intermediate goods and services purchased.
  3. Consists of GDP less gross value added of farm, of
households and institutions, and of general government.
  See "Explanatory Note" at the end of the tables.



     Explanatory Note: NIPA Measures of Quantities and Prices


     Current-dollar GDP is a measure of the market value of goods, services, and structures produced in
the economy in a particular period.  Changes in current-dollar GDP can be decomposed into quantity and
price components.  Quantities, or "real" measures, and prices are expressed as index numbers with the
reference year -- at present, the year 2000 -- equal to 100. 

     Annual changes in quantities and prices are calculated using a Fisher formula that incorporates
weights from two adjacent years.  (Quarterly changes in quantities and prices are calculated using a
Fisher formula that incorporates weights from two adjacent quarters; quarterly indexes are adjusted for
consistency to the annual indexes before percent changes are calculated.)  For example, the 2001-02
annual percent change in real GDP uses prices for 2001 and 2002 as weights, and the 2001-02 annual
percent change in GDP prices uses quantities for 2001 and 2002 as weights.  These annual changes are
"chained" (multiplied) together to form time series of quantity and price indexes.  Percent changes in
Fisher indexes are not affected by the choice of reference year.  (BEA also publishes a measure of the
price level known as the implicit price deflator (IPD), which is calculated as the ratio of the
current-dollar value to the corresponding chained-dollar value, multiplied by 100.  The values of the IPD
are very close to the values of the corresponding "chain-type" price index.)

     Index numbers of quantity and price indexes for GDP and its major components are presented in this
release in tables 5 and 6. Percent changes from the preceding period are presented in tables 1, 4, 7, and 8.
Contributions by major components to changes in real GDP are presented in table 2.  

     Measures of real GDP and its major components are also presented in dollar-denominated form,
designated "chained (2000) dollar estimates."  For most series, these estimates, which are presented in
table 3, are computed by multiplying the current-dollar value in 2000 by a corresponding quantity index
number and then dividing by 100.  For example, if a current-dollar GDP component equaled $100 in
2000 and if real output for this component increased 10 percent in 2001, then the chained (2000) dollar
value of this component in 2001 would be $110 (= $100 x 110 / 100). Percent changes calculated from
chained-dollar estimates and from chain-type quantity indexes are the same; any differences will be small
and due to rounding.  

     Chained-dollar values for the detailed GDP components will not necessarily sum to the chained-dollar
estimate of GDP (or to any intermediate aggregate). This is because the relative prices used as weights
for any period other than the reference year differ from those of the reference year. A measure of the
extent of such differences is provided by a "residual" line, which indicates the difference between GDP
(or other major aggregate) and the sum of the most detailed components in the table.  For periods close to
the reference year, when there usually has not been much change in the relative prices that are used as
weights, the residuals tend to be small, and the chained-dollar estimates can be used to approximate the
contributions to growth and to aggregate the detailed estimates.  For periods further from the reference
year, the residuals tend to be larger, and the chained-dollar estimates are less useful for analyses of
contributions to growth.  Thus, the contributions to percent change shown in table 2 provide a better
measure of the composition of GDP growth.  In particular, for components for which relative prices are
changing rapidly, calculation of contributions using chained-dollar estimates may be misleading even just
a few years from the reference year.

Reference: "Chained-Dollar Indexes: Issues, Tips on Their Use, and Upcoming Changes," November
2003 Survey, pp. 8-16.